Reserve Bank slaps Rs 3 crore penalty on Citibank

In July 2013, the RBI had issued a “cautionary letter” to Citibank for violations of instructions regarding KYC or anti-money laundering

The Reserve Bank of India (RBI) has imposed a penalty of Rs 3 crore on Citibank India for not complying with directions regarding the ‘fit-and-proper criteria’ for directors of the bank.

The RBI in a statement, however, added that the action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

“The Reserve Bank of India (RBI) has, by an order dated January 4, 2019, imposed a monetary penalty of Rs 30 million on Citibank India (the bank) for deficiencies in compliance with the RBI instructions on ‘Fit and Proper’ criteria for directors of banks,” it said.

In July 2013, the RBI had issued a “cautionary letter” to Citibank for violations of instructions regarding KYC or anti-money laundering.

The US-based Citibank has been operating in India for over 115 years.

The bank has 35 branches in India and a network of 541 ATMs, according to the latest RBI data.